Customer Churn

Definition of Customer Churn

The rate at which customers stop doing business with a company.

Explanation of Customer Churn

Customer churn, also known as customer attrition, refers to the rate at which customers stop doing business with a company over a specific period. High churn rates indicate that a company is losing customers faster than it can acquire new ones, which can impact revenue and growth. Businesses track churn rates to understand customer satisfaction and identify areas for improvement. Reducing churn involves addressing the reasons why customers leave, such as poor service, lack of engagement, or better offers from competitors. By improving customer experience, providing value, and maintaining strong relationships, companies can reduce churn and enhance customer loyalty.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.